1.0  Introduction 

  1. Terms of reference

 
This report has been written with the purpose of providing a clear marketing and promotion plan for Gap. Insights will be shown the business environment – the ethical policy in the fashion retail market, marketplace and competitors analysis and a marketing and promotional plan. 

1.2  Background of the brand 
 
Gap is the American based company. In 2006, there were 130 stores in the UK and most of which carry womenswear. There are just a handful of childrenswear-only stores.

In spring 2006, the company appointed its first heads of design across menswear, womesnswear and childrenswear. These are part of the strategy to create a London-based UK team to design specifically for this market; their influence was put to task from spring 2007. The company will not be moving too far away from its heritage and what it is know for, but wants to ‘broaden the offer’ as ‘the UK is more fashion-focused’ than the US and France.

Gap’s consumer appeal is strongest amount 14-34s and dropped off sharply after that, which is interesting considering media reports that Gap had lost its fashion credibility . 

The Financial performance of Gap is poor and largely driven by undifferentiated product ranges and lack of images of XXXXXXXXX

However, the consumers trust the brand very much, but not as much as Marks & Spencer. 

(Appendix 1) 
 

2.0 Methodology 

  1. Secondary research  

First, I used search engines such as Yahoo and Google for general research, which has given me a good understanding of the brand. Then, I researched the ethical issues market and the retail fashion market from Mintel and the Gap Website. I also found competitors’ ethical policy from their website. The official website of Gap also provided a financial report and the background of the company, whereas mintel provided more detailed information on consumers. 

  1. Primary research

 

Primary research was conducted by interview (appendix 2) and questionnaires(appendix3) about ethical policy in the fashion retail industry, customer profiles, competitors’ retail outlets and their ethical policy. 

I went to the Gap stores in London and Kent. I also went to its competitors stores for observational research. Staff at Gap have given me some general information about the brand and which helped me fill in my Marketing Mix. 
 
 
 
 
 
 
 
 
 
 
 

3.0       Research Outcomes 
3.1        Results of secondary research 
3.1.1   Ethical & green Issue in the market 

  • More than six in ten respondents agree that they would like to buy clothing or footwear from companies they believe are ethical 
  • 26% of women say that ethical and eco issues influences their shopping habits 
  • 63% agree that ‘companies are just using these issues to try to make themselves look good’ 
  • 64% agree that they feel strongly enough to take green and ethical issues into consideration whenever possible. 
  • 24% are ‘keen to be green’ – very conscious of, and conscientious about, green and ethical issues and try their hardest to do what they can.
  • 23% are ‘confused but willing’ most likely to say that they ‘don’t really know what they should or should not be doing but clearly open to learning more’ 
  • The most popular environmental/ethical issues is ‘the need to recycle’. 
  • Environmental and ethical concerns of those who would never buy clothing from companies who exploited their workers. 
  • Although AB consumers are at the forefront of green and ethical consumerism, many still feel that they should do more, and may be willing to change their lifestyles even further if they can be shown that their actions are likely to make a difference. 
  • D socio-economic group (some of their key customers) are keen to express their dislike for clothing which has been produced using exploitative methods. 

(mintel, Green and Ethical Consumers, January 2007) 

 
 

  • 67% of consumers would “switch to more ethical brands only if the cost of purchase were the same” 

(Marketing, Nicola Clarke, Top 10 and bottom 10 ethical brands, 29 April 2008) 

  • 59% of consumers think it is important that a company acts ethically 

(mintel - Green and Ethical fashion and Beauty, 2007)

 
 
 
 
Marks & Spencer categorise this consumer market into four groups:
 

‘Green crusaders’ (11%) – ‘are already making a significant difference themselves and expect business to take a lead as well.’ 

‘If it’s easy’ (27%) – ‘are willing to play their part provided it does not require significant personal change or sacrifice.’ 

‘What’s the point’ (38%) – ‘are increasingly concerned about environmental and social issues but don’t believe that they personally can make a difference’ 

‘Not my problem’ (24%) – ‘haven’t engaged with green issues to date’

()

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Impact of the Environment 
 

 

(mintel - Impact of the Environment, April 2007) 

 
 
 
 
 
 
 
 
 
Complexity and scale of the challenge  

The complexity and scale of the eco-challenge is huge and consumers are constantly being bombarded with new information. Different issues appeal to different groups of people. This is not the forum for such a discussion but the chart below highlights the wide range of subjects involved. 

 
 
(mintel - Clothing Retailing - Europe - October 2007)
 
 
 
 
 
 
 
 

3.1.2   Retail markets  

  • Designer-inspired collections have been popular in the mass market. 
  • The UK clothing shoppers are quite loyal, with the mean number of stores used at 3.5 times a month. 
  • Awareness and consumer interest in ethical and green issues has been rising. 
  • low-priced fashion has become increasingly popular in recent times (ie.  and ) 
  • Falling prices and the mass production have led to more impulse buying. But frequent consumption is now starting to be laced with elements of guilt, and if people feel guilty about overdoing things they may just start to think more carefully about each purchase. 
  • Fashion retailers’ advertising is being noticed by an audience that is too concentrated in the middle-age bracket among the lower-to-middle end of the market. 

(mintel - Fashion Advertising, November 2007) 
 
 
 
 
 
 
 
 
 
 
 
 
 

3.1.3    The brand – Gap 

  • Gap has been doing many social responsibility and ethical fashion since 1992, such protecting the environment and giving back to our communities. (appendix) 

However, not many people (only 21% from questionnaire) knows about the brand do have ethical policy and plan. (appendix3) 

  • Gap has a stronger AB bias, losing shoppers rapidly among the C1.
  • In 2006, U2 lead singer Bono has launched a new worldwide brand, ‘(Product) Red’, supported by Gap. 
  • Gap appeals mainly to the pre-/no family shoppers, reaching one in three 25-44s and one in four 20-24s and 45-54s. 
  • Gap survived a lower financial year (2006 – 2007) with a high decrease in UK profits. 
  • Falling sales and market share in 2007 lead to the closing of unprofitable stores. Too much space, too few new ideas.
Join now!

(mintel – Clothing Retailing, September 2007) 

  • Although the advertising spend of Gap has been cut down 42.9% from 2002-06, the amount is still high. They mainly spend on press and outdoor advertising space.                                                                 (appendix 4) 
  • Mintel’s consumer research shows that 8% of women bought Gap womenswear in 2004. 
  • Gap is now a safe haven for over-35, but losing 15-34s customers 

(mintel - Womenswear Retailing, July 2006) 
 
 
 
 
 
 
 
 

  1. Results of primary research 
  • Both Gap stores in London and Kent do not show the range of ‘(Product) Red’ on the eye level. They ...

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